"The Environmental Protection Agency will reject a proposed overhaul of the U.S. biofuels program that would have shifted blending responsibility away from refining companies further down the fuel supply chain, three sources familiar with the matter told Reuters on Thursday.

The decision is a blow to independent oil refiners like Valero Energy Corp and CVR Energy that have said the requirement costs them hundreds of millions of dollars every year, as well as to billionaire investor Carl Icahn who holds a majority stake in CVR and vocally supported the change.

Online news site Politico was first to report the EPA's decision, citing an unnamed senior administration official."